• Journal of Korea Trade
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• v.25 no.1
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• pp.184-202
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• 2021

Purpose - This study empirically investigates the relationship between expatriate CEOs of multinational corporation (MNC) foreign subsidiaries and local philanthropy. Since corporate social responsibility (CSR) enables MNCs to achieve local legitimacy, this research argues that local philanthropy is a valuable strategic means for expatriate CEOs of foreign subsidiaries to secure local legitimacy. Design/methodology - To investigate our argument, we use a sample of 5,459 observations from 576 foreign subsidiaries of MNCs in Korea between 2002 and 2016. We conduct a random-effects panel Tobit regression with subsidiary CEO having foreign nationality as the independent variable and local philanthropy as the dependent variable. Findings - Our main findings are that expatriate CEOs of foreign subsidiaries are more actively engaged in local philanthropy. In addition, the positive relationship between expatriate CEOs and local philanthropy is weaker as their tenure increases. Originality/value - How expatriate CEOs overcome their weak local legitimacy as foreigners in a host country has remained unclear because existing studies mainly focused on the control and coordination aspects of staffing expatriates in CEO positions of foreign subsidiaries. This study broadens the literature on subsidiary CEO staffing and CSR activities of MNCs by identifying complementary relationships between expatriate CEOs and corporate philanthropy in the host country.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.19 no.3
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• pp.27-40
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• 2024

This study empirically derives the factors affecting the practice of corporate social responsibility (CSR) of venture firms in Korea from the perspective of Slack Resource Theory and the company's growth strategy, and provides implications for future expansion of venture firm's CSR activities. In Korea, venture firms have grown into important players in the national economy since the late 1990s through social contributions such as economic value creation, job creation, and technological development. As venture companies grow in status, positive relationships with stakeholders and responsibility for environmental and social values are required. Now, CSR is becoming an important strategic choice for SMEs and venture firms. However, until now, CSR-related academic research has mainly focused on large or listed corporations, and there is not much research on SMEs or venture firms. In particular, research on the factors that lead venture companies to make important business decisions of participating in CSR activities is not there yet. This study applied logistic multiple regression analysis using the '2023 Survey on Venture Firms' conducted by the Ministry of SMEs and Startups. As a result of this study, operating profit, which is an available resources of venture companies, and government support, which is a potential resource, have a positive impact on venture firms's CSR activities. Also, business relationships with large corporations and expectation for future cooperation also have a positive impact on CSR activities as the determinants. On the other hand, it was analyzed that in venture firms where ownership and management are not separated, the higher the CEO's shareholding ratio, the more negatively it affects CSR activities. This study contributes academically as the first empirical study on the determinants of CSR activities of venture firms in Korea and provides implications that government policy support and collaboration between large corporations and venture firms are important in order to expand CSR activities of venture firms.

• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.5-16
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• 2009

Corporate social responsibility (CSR) activities have been shown to be potential factors that can improve corporate image and increase the ability of corporations to compete. However, most previous studies related to CSR activities investigated how these activities influence product and corporate evaluation, as well as corporate image. In addition, some researchers treated consumers' perceptions of corporate motives as moderator variables in evaluating the relationship between corporate social responsibilities and consumer response. However, motive-based theories have some weaknesses. Corporate social responsibility activities cause two motives(egoistic vs. altruistic) for consumers, but recently, Vlachos et al. (2008) argued that these motives should be segmented. Thus, it is possible to transform the original theory into a modified theory model (persuasion knowledge model, PKM). Vlachos et al. (2008) segmented corporate social responsibility motives into four types and compared the effects of these motives on customer loyalty. Prior studies have proved that CSR activities with positive motives have positive influences on customer loyalty. However, the psychological reasons underlying this finding have not been determined empirically. Thus, the objectives of this research are twofold. First, we attempt to determine why most customers favor companies that they feel have positive motives for their corporate social responsibility activities. Second, we attempt to measure the effects of consumers' reciprocity when society benefits from corporate social responsibility activities. The following research hypotheses are constructed. H1: Values-driven motives for corporate social responsibility activities have a positive influence on the perceived reciprocity. H2: Stakeholder-driven motives for corporate social responsibility activities have a negative influence on the perceived reciprocity. H3: Egoistic-driven motives for corporate social responsibility activities have a negative influence on perceived reciprocity. H4: Strategic-driven motives for corporate social responsibility activities have a negative influence on perceived reciprocity. H5: Perceived reciprocity for corporate social responsibility activities has a positive influence on consumer loyalty. A single company is selected as a research subject to understand how the motives behind corporate social responsibility influence consumers' perceived reciprocity and customer loyalty. A total sample of 200 respondents was selected for a pilot test. In addition, to ensure a consistent response, we ensured that the respondents were older than 20 years of age. The surveys of 172 respondents (males-82, females-90) were analyzed after 28 invalid questionnaires were excluded. Based on our cutoff criteria, the model fit the data reasonably well. Values-driven motives for corporate social responsibility activities had a positive effect on perceived reciprocity (t = 6.75, p < .001), supporting H1. Morales (2005) also found that consumers appreciate a company's social responsibility efforts and the benefits provided by these efforts to society. Stakeholder-driven motives for corporate social responsibility activities did not affect perceived reciprocity (t = -.049, p > .05). Thus, H2 was rejected. Egoistic-driven motives (t = .3.11, p < .05) and strategic-driven (t = -4.65, p < .05) motives had a negative influence on perceived reciprocity, supporting H3 and H4, respectively. Furthermore, perceived reciprocity had a positive influence on consumer loyalty (t = 4.24, p < .05), supporting H5. Thus, compared with the general public, undergraduate students appear to be more influenced by egoistic-driven motives. We draw the following conclusions from our research findings. First, value-driven attributions have a positive influence on perceived reciprocity. However, stakeholder-driven attributions have no significant effects on perceived reciprocity. Moreover, both egoistic-driven attributions and strategic-driven attributions have a negative influence on perceived reciprocity. Second, when corporate social responsibility activities align with consumers' reciprocity, the efforts directed towards social responsibility activities have a positive influence on customer loyalty. In this study, we examine whether the type of motivation affects consumer responses to CSR, and in particular, we evaluate how CSR motives can influence a key internal factor (perceived reciprocity) and behavioral consumer outcome (customer loyalty). We demonstrate that perceived reciprocity plays a mediating role in the relationship between CSR motivation and customer loyalty. Our study extends the research on consumer CSR-inferred motivations, positing them as a direct indicator of consumer responses. Furthermore, we convincingly identify perceived reciprocity as a sub-process mediating the effect of CSR attributions on customer loyalty. Future research investigating the ultimate behavior and financial impact of CSR should consider that the impacts of CSR also stem from perceived reciprocity. The results of this study also have important managerial implications. First, the central role that reciprocity plays indicates that managers should routinely measure how much their socially responsible actions create perceived reciprocity. Second, understanding how consumers' perceptions of CSR corporate motives relate to perceived reciprocity and customer loyalty can help managers to monitor and enhance these consumer outcomes through marketing initiatives and management of CSR-induced attribution processes. The results of this study will help corporations to understand the relative importance of the four different motivations types in influencing perceived reciprocity.

• Journal of Korea Society of Industrial Information Systems
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• v.13 no.4
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• pp.83-97
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• 2008

Recently, as managing organization's stakeholders become important, a viewpoint of corporate social responsibility (CSR) has been changed. Unlike in the past, organizations have performed CSR in their active and strategic point of view. Previous studies about the effect of social responsibility generally focused on customer response, social performance, and financial performance, and studies about the influence on business processes and organizational members are relatively not sufficient. In particular, there is few studies about the relationship among CSR, organization's innovation capability, and non-financial performance. The purpose of this study is to examine the effect of CSR to knowledge management and organizational performance by using multiple regression analysis. Specifically, from the empirical result of this study with 256 Korean finns in diverse industries including the manufacturing, we identified that CSR has positive influence on knowledge management and organizational performance.

• The Korean Journal of Health Service Management
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• v.12 no.2
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• pp.149-162
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• 2018

Objectives : This study aimed to develop tools to measure the social responsibility activities of hospitals using ISO 26000 and to verify the validity and reliability of the developed tools. We verified the content and structural validity, as well as the internal consistency of the proposed measurement tool for hospitals' social responsibility. Methods : We conducted an online survey on hospitals/employees from Feb 26 to Mar 12, 2018, and analyzed selected 197 respondents from the survey by removing incomplete responses. Results : The developed hospitals' CSR (HSR) measurement tool consists of 36 items with 5 factors: "consumer issues", "labor practices", "community involvement & development", "fair operating practice", and "environment". Analysis revealed high reliability with Cronbach' alpha of 0.981. Conclusions : It was verified that the developed HSR tool fully reflected hospital characteristics. This tool can be used to diagnose hospitals' social responsibility and to support strategic decision on social responsibility.

• Journal of Distribution Science
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• v.12 no.8
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• pp.31-42
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• 2014

Purpose - Recently, a variety of activities for practicing the continuing management of domestic and foreign companies have been conducted and further, corporate social responsibility for maximizing the value of stakeholders such as customers, cooperative companies, and the local community emerges as a key business strategy. Accordingly, the issue of whether corporate image and customer value through corporate social responsibility activities positively affect customer loyalty and customer attitude is investigated in this study. Research design, data, and methodology - Corporate social responsibility activities are classified into legal and moral activities, environmental protection activities, economic activities, and community service activities; further, customer values are classified into emotional value, functional value, and social value, to determine the parameters. In addition, the strategic approach direction of social responsibility activities is justified as a strategy for effectively achieving the expected results that corporations seek by proving the effect of these parameters on customer loyalty. Results - The study results can be summarized as follows. First, legal and moral activities, environmental protection activities, economic activities, and community service activities are four types of CSR activities affecting meaningful improvements in corporate image. Second, legal and moral activities affect factors that meaningfully improve customer value, including factors such as emotional value, functional value, and social value, while environmental protection activities affect improvements in the factor of social value only. Third, corporate image affects meaningful improvements in customer value. Fourth, corporate image affects improvements in customer loyalty positively. Fifth, the three factors of customer value, that is, emotional value, functional value, and social value affect meaningful improvements in customer loyalty. Sixth, customer value acts to partly mediate the effect of companies' CSR activities on customer loyalty. As shown in the study results above, it was verified that CSR activities affect meaningful improvements in corporate image and customer value and, in turn, corporate image and customer value affect meaningful improvements in customer loyalty. In addition, it was verified that customer value acts to partly mediate the effects of companies' CSR activities on customer value. Conclusions - Accordingly, the results of this study suggests as follows. First, it was clearly verified that customers' recognition of CSR efforts has a positive effect on corporate image, customer value, and loyalty because CSR activities improve the relationships between customers and corporations by providing customers with value. Second, it was suggested that corporations implement social contribution activities strategically according to the theory that the higher the rate of CSR activities, the better the corporate image and repurchase intention would be, which is a theory verified through practical analysis. Corporations should do this by constructing positive relationships from the value perceived by customers. To summarize the study results in a brief manner, it is suggested by the results of the study that a corporation should conduct CSR more actively to make customers recognize the positive image of their products and services.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.2
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• pp.119-128
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• 2018

A primary goal of transnationals is to offer their vision for selling products or services so that they are relevant to local cultures. The purpose of this study is to provide a solution for how transnational companies face various environments and how they can utilize and overcome them and survive strategically. This study will present strategic recommendations for transnational organizations. First, transnational organizations should identify the core areas where organizational can invest or allocate its precious resources to get full advantage of the attractive opportunities form the market and focus on building strong networks with the key stakeholders. Second, they should manage the knowledge flows and provide strategic direction in cooperative venture for the long term successful future and ensure that every department has an effective coordination with other departments in order to bring about the organizational change. Lastly, they should overcome the challenges managers face in a transnational business environment when companies expand their operations into international markets. The managers need to assess the organization's strengths and weaknesses and evaluate different forces which are present in the external environment. And then, Managers have to ensure that the company has sufficient resources, core competencies and capabilities.

• Journal of Digital Convergence
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• v.17 no.3
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• pp.93-106
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• 2019

This study examined how four domains of corporate social responsibility (CSR) affect the trust and distrust of corporations and contribute to their reputation. In particular, this study examined the mediation role of trust and distrust between CSR domains and reputation. The results showed that ethical responsibility and philanthropic responsibility had influence on trust. Legal responsibility had a significant effect on the distrust. Companies that did not fulfill legal responsibilities were more likely to be distrusted. The influence of trust on corporate reputation was significant. The results of this study indicated that trust was a mediator between ethical responsibility, philanthropic responsibility, and reputation. Economic responsibility had a direct influence on reputation. Theoretical and practical implications for strategic approach in each CSR domain are discussed.

• Journal of Venture Innovation
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• v.1 no.2
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• pp.13-34
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• 2018

In this case, research has been conducted to verify that the purpose of establishing a reputation for establishing a reputation for identifying brand equity is research and investigation in the context of establishing a reputation for establishing a reputation, and conducting research on CSR activities that are essential to the essential activities of companies. The survey conducted a survey on behalf of the National Center for Adult Women and Girls and Girls ' Generation, using the final round of Section 305 to develop a series of findings, including the analysis of the feasibility analysis, feasibility analysis, reliability, correlation analysis, and factors analysis. A summary of the effects of research on corporate reputation on corporate reputation according to corporate CSR activities is as follows. 1st. Brand equity will have a positive effect on the Company's reputation. The hypothesis had a significant impact on brand recognition, brand loyalty, and perceived quality, but did not have significant impact on the brand image. 2st. Brand equity will have a positive effect on ethical responsibility. The hypothesis had a significant impact on brand recognition, brand loyalty, and perceived quality, but did not have significant impact on the brand image. 3st, the brand equity will have a positive effect on the benefit of the benevolent. The hypothesis had a significant impact on brand recognition, brand loyalty, and perceived quality, but did not have significant impact on the brand image. 4st, The theory that the influence of positive(+) will affect the company's reputation has a significant impact on both ethical and philanthropic factors. 5st. The ethical responsibility was found to have no effect on the usefulness of the brand between brand assets and corporate reputation. 6st. The philanthropic responsibility was partly attributable to the fact that there was a substitution between brand equity and corporate reputation. In sum, the company needs to prioritize its brand recognition before establishing its reputation, and the reason why it should be implemented is that the other elements of the brand equity should be evaluated with the presence of other elements of the brand equity, thereby ensuring continued compliance with continuous CSR activities. As a result, consumers expect to see the performance-based role of the company as a strategic and long-term perspective, as consumers want to see the CSR activity and the corporate reputation in a long-term manner, as opposed to the financial responsibility and legal responsibilities of the past, as opposed to the past.

• Journal of Distribution Science
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• v.12 no.9
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• pp.101-112
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• 2014

Purpose - Recently, although corporate social responsibility activities have been increasing in size, they do not have to achieve qualitative improvements and can be passive and cost consuming. Therefore, companies should make quantitative as well as qualitative improvements in their efforts in corporate social responsibility activities. In this study, the classification of social responsibility activities in a variety of studies was analyzed through a more specific path than in previous studies. Corporate behavior image, social behavior image, and corporate contributions image were analyzed through a more detailed analysis of performance. This study suggests that more detailed and concentrated social responsibility activities be pursued by forming companies. Research design, data, and methodology - The purpose of study is to gauge the corporate need for a more intensive, specific area of CSR activities. For this purpose, the sample of consumers that were targeted for CSR activities, recognized as 261 persons, have been investigated. Through a theoretical discussion on previous research, nine hypotheses were established on corporate image, the influence of corporate performance on CSR, and the CSV regulation effect. In order to test the hypothesis, a survey was conducted on 261 male and female consumers who were targeted for CSR, being persons in their 20s to 40s. PASW Statistics 18.0 and AMOS 18.0 were used for statistical analysis. Results - Corporate behavior image was formed through legal responsibility activities and economic responsibility activities. In addition to economic responsibilities, ethical responsibilities and environmental responsibilities were confirmed to have influence on social behavior image. Corporate social responsibility and philanthropic responsibility were confirmed to have influence on economic contribution image. Corporate image has positive effects on brand attitude, corporate reputation, and corporate competition. In addition, when CSV awareness is high, consumers perceive corporate image only through economic responsibility. However, when CSV awareness is low, economic responsibility as well as legal responsibility through charitable activities form the corporate image that influences the brand attitude and corporate reputation, as well as corporate competitiveness. It would appear that the area of corporate social responsibility needs more intensive management for corporate image and corporate competitive advantage. Conclusion - First, the findings of this study show that each CSR activity has a different effect on corporate image and thus, the corporate image influences corporate performance in distinct ways, depending on the CSR activity. This implies that reactive strategies should be tailored to the required image. Second, there is a difference in CSV awareness between groups. When the CSV awareness is low, we can confirm that legal responsibility activities have an especially significant effect on corporate image, implying that corporations should pursue their economic objectives within legal regulations and need to invest significant time and effort for this. This study has limited generalization potential because the result of the model fit has insufficient reference value. In future research, we need to approach various dimensions of corporate performance.